M'ARTHUR COMPANIES

Evening Star, Issue 22445, 16 September 1936, Page 14

M'ARTHUR COMPANIES

FURTHER LEGAL PROCEEDINGS [Per United Press Association.] AUCKLAND, September 15. Legal action, which is expected to last for several days and involving the companies associated with J. _\V. M'Arthur, was commenced in the Supreme Court to-day. The plaintiffs are Thomas Henry Dawson and Leonard Knight as trustees for debentureholders of New Zealand Redwood Forests Ltd., and they are joined as plaintiffs by T. E. Jones, of Dargaville, one of the debenture-holders. The defendants are the Sterling Investments Company (New Zealand) Ltd., in liquidation, Wynwood Investments Ltd., and the National Investment Company of Queensland proprietary Ltd. The action is brought by the plaintiffs for the purpose of having declared invalid a mortgage of £7,500 which was given in April, 1931, by New Zealand Redwood Forests Ltd. to Kotahi Lands Ltd., and on subsequent dates was transferred to various other companies. The plaintiffs allege that there was a conspiracy between the defendants to defeat and delay the rights of the de-benture-holders of the Redwood Company. They claim to be able to show that these companies were members of the group controlled by J. W. S. M‘Arthur, and that, although in the case of some of them M‘Arthur was not actually a director, nevertheless the companies concerned acted in accordance with his wishes and under his direction and control , Counsel’s opening address was not completed when the court adjourned.